Question

Marginal cost is defined as:________.
a. total variable cost divided by total output.
b. the change in total costs from producing one more unit of output.
c. total cost divided by total output.
d. the change in fixed cost from producing one more unit of output.

Answer 1

Answer:

b. the change in total costs from producing one more unit of output.

Explanation:

The marginal cost is the cost that incurred for generating one more additional unit of output

It could be computed as shown below:

Marginal cost = Change in total cost ÷ change in quantity

Therefore as per the above explanation, the option b is correct

And, the same is to be considered

Thus, all the other options are incorrect